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U.S. Department of Energy
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Definitions and tradeoffs: Cost-effectiveness of utility DSM programs

Conference ·
OSTI ID:10150170
 [1]
  1. Oak Ridge National Lab. (ORNL), Oak Ridge, TN (United States)
More and more US utilities are running more and larger demand-site management (DSM) programs. Assessing the cost-effectiveness of these programs raises difficult questions for utilities and their regulators. In particular, should these programs aim to minimize the total cost of providing electric-energy services or should they minimize the price of electricity? Most of the debates about the appropriate economic tests to use in assessing utility programs are philosophical and do not address the magnitude of the impacts. As a result, questions remain about the relationships among utility DSM programs and acquisition of supply resources and the effects of these choices an electricity prices, bills, and costs. This study offers quantitative estimates on the tradeoffs between total costs and electricity prices. This study uses a dynamic model to assess the effects of energy-efficiency programs on utility revenues, total resource costs, electricity prices, and electricity consumption for the period 1990 to 2010. These DSM programs are assessed under alternative scenarios for three utilities: a ``base`` that is typical of US utilities; a ``surplus`` utility that has excess capacity, few planned retirements, and slow growth in fossil-fuel prices and incomes; and a ``deficit`` utility that has little excess capacity, many planned retirements, and rapid growth in fossil-fuel prices and incomes.
Research Organization:
Oak Ridge National Lab., TN (United States)
Sponsoring Organization:
USDOE, Washington, DC (United States)
DOE Contract Number:
AC05-84OR21400
OSTI ID:
10150170
Report Number(s):
CONF-920828--1; ON: DE92015103
Country of Publication:
United States
Language:
English